Condensed Statement Of Financial Position Of Laporte Corporation

Condensed Statement Of Financial Position Of Laporte Corporation

Question Description

The condensed statement of financial position of Laporte Corporation reports the following amounts:

LAPORTE CORPORATION

Statement of Financial Position (partial)

June 30, 2015

Total assets                                                                       $16,164,500

Total liabilities                                                                     $5,934,500

Shareholders’ equity Common shares, unlimited

number authorized, 419,800   issued     $2,099,000

Retained earnings                                          8,131,000   10,230,000

Total liabilities and shareholders’ equity                       $16,164,500

The common shares are currently trading for $30 per share. Laporte wants to assess the impact of three possible alternatives

 

Instructions

(a) Determine the impact of each alternative on (1) assets, (2) liabilities, (3) common shares, (4) retained earnings, (5) total shareholders’ equity, and (6) the number of shares.

(b) Identify the advantages and disadvantages of each alternative for the company.

 

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